1. Which of the following is true regarding corporations? A. A corporation is no
ID: 378866 • Letter: 1
Question
1. Which of the following is true regarding corporations?
A. A corporation is not a separate legal entity.
B. A corporation may not be sued.
C. A corporation is created according to federal law.
D. Shareholders may typically be held liable for debts of the corporation.
E.The corporation must pay taxes on profits, and shareholders must pay taxes on dividends they receive from the corporation.
2. Officers of a corporation are hired by the shareholders. True or False?
3.Members of the board of directors of a corporation are elected by shareholders. True or False?
Explanation / Answer
1. Which of the following is true regarding corporations?
C. A corporation is created according to federal law.
A Corporate is a legal entity that is created by the law of the State where such a Corporate is set up.
2. Officers of a corporation are hired by the shareholders. True or False?
False
Officers of a Corporation are hired by the Board of Directors.
3.Members of the board of directors of a corporation are elected by shareholders. True or False?
True
In a Stock Corporation, the members of the Board are elected by the shareholders, who in turn elect their CEO and other Officers to oversee the Business activities of the Corporation.
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